Canbank VC Fund picks up 6.11% stake in Scotts Garments

Canbank Venture Capital Fund (CVCFL), a subsidiary of

Canara Bank, has picked up 6.11 percent stake in Bangalore-based Scotts Garments for Rs 20 crores. The CVCFL has made the investment through its Emerging India Growth Fund, a Rs 500 crores fund.

Scotts Garments, promoted by Naseer Ahmed in 2002, is a 100 percent export-oriented unit with readymade garment manufacturing facilities at Bangalore and a processing unit at Tirupur. The company has been exporting garments to several global brands including Jack & Jones, Vero Moda, Only, Marks & Spencer, American Eagle, H&M Hennes & Mauritz, Perry Ellis, Benetton, Wal-Mart and Carrefour among others.

The company, which is coming out with an initial public offering (IPO) to raise Rs 155 crores this January 2013, plans to part finance the setting up of new units for trouser manufacturing at Doddaballapur in Karnataka, knitting and fabric processing unit at Kagal in Kolhapur, Maharashtra.

The company, which reported a topline of Rs 500 crores in 2011-12, is looking at a growth of 10 percent for the year ending March 2013.